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April 25, 2013  Thu 1:47 AM CT

DRYS: SEE CHART GET CHAIN FIND STRATEGIES
A large trader apparently believes that DryShips may make a sharp turn higher or lower.

optionMONSTER systems show that a trader bought 4,500 January 1.50 puts in one print for the ask price of $0.25. This is clearly a new position, as the volume was 7 times higher than the strike's open interest of just 652 contracts before the session began.

About a minute later, the largest block of DRYS stock traded as 112,500 shares were bought for $1.79. The combination of puts and stock creates a delta-neutral play that is looking for a big move in either direction and/or higher volatility than that implied by those puts. (See our Education section)

DRYS rose 3.95 percent to $1.84 yesterday. Last week the dry-bulk carrier saw its lowest prices since the first couple of days of 2013. Shares traded up to $2.40 in mid-February.

More than 6,300 DRYS options changed hands yesterday, compared to a daily average of 1,334 in the last month.
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